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Can I apply for a loan elsewhere if I didn't take up the offer from HSBC?
Hello,
On Tuesday I applied for a £15k loan from HSBC hoping to get the 3.9% rate. I was pretty confident that I would get it because my credit score according to Experian and Equifax is currently maxed out and I have no debt. However, whilst I was approved by HSBC for the loan I was given a rate of 9.9%. Puzzled by this the guy helping me out looked into my HSBC history and noticed that I had taken a £8k personal loan out with HSBC back when rates were 4.8% in November 2013 with a 28 month term but paid it all back in March of this year. He said that because the loan was unsuccessful on HSBC's behalf then I am seen as a higher risk to them due to the fact that there is a higher probability that I will prepay.
In all honesty the £15k loan @ 48 months I was looking to take out was for various items but I don't think I will actually need it all, and I don't plan on holding it to term either, but I like the flexibility to be able to manage the repayments in case I do need to stick to the minimum payment for a couple of months for whatever reason. The agent at HSBC suggested that I could try to get a loan at another place and will probably be approved at a better rate because they won't have a history with me like HSBC does. This makes sense but now I'm wondering if I am able to go to another bank within such a short time frame to have my credit checked again and approved for a loan. After all, technically the credit check from seeking out the HSBC loan should just say that I declined the offer, not that I wasn't approved.
For people with knowledge about a situation like this, is it advisable to seek out a loan from another provider so soon or should I play it safe and wait at least 3 months to apply again?
On Tuesday I applied for a £15k loan from HSBC hoping to get the 3.9% rate. I was pretty confident that I would get it because my credit score according to Experian and Equifax is currently maxed out and I have no debt. However, whilst I was approved by HSBC for the loan I was given a rate of 9.9%. Puzzled by this the guy helping me out looked into my HSBC history and noticed that I had taken a £8k personal loan out with HSBC back when rates were 4.8% in November 2013 with a 28 month term but paid it all back in March of this year. He said that because the loan was unsuccessful on HSBC's behalf then I am seen as a higher risk to them due to the fact that there is a higher probability that I will prepay.
In all honesty the £15k loan @ 48 months I was looking to take out was for various items but I don't think I will actually need it all, and I don't plan on holding it to term either, but I like the flexibility to be able to manage the repayments in case I do need to stick to the minimum payment for a couple of months for whatever reason. The agent at HSBC suggested that I could try to get a loan at another place and will probably be approved at a better rate because they won't have a history with me like HSBC does. This makes sense but now I'm wondering if I am able to go to another bank within such a short time frame to have my credit checked again and approved for a loan. After all, technically the credit check from seeking out the HSBC loan should just say that I declined the offer, not that I wasn't approved.
For people with knowledge about a situation like this, is it advisable to seek out a loan from another provider so soon or should I play it safe and wait at least 3 months to apply again?
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Comments
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It will just show that a search has been conducted, nothing more.After all, technically the credit check from seeking out the HSBC loan should just say that I declined the offer, not that I wasn't approved.
General opinion is that you can have up to three recent searches before suffering from higher rates.0 -
The new offer isn't from Tesco, is it?"Facism arrives as your friend. It will restore your honour, make you feel proud, protect your house, give you a job, clean up the neighbourhood, remind you of how great you once were, clear out the venal and the corrupt, remove anything you feel is unlike you... [it] doesn't walk in saying, "our programme means militias, mass imprisonments, transportations, war and persecution."0
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